Home to roost: Getting out of our housing mess
By David James, 16 May 2022
The progressive lowering of interest rates to almost zero since the Global Financial Crisis of 2008 has triggered a house price bubble that has divided the community between older people, who bought at more reasonable levels, and younger generations, who purchased at higher levels.
The game of ever-cheaper debt came to an end when the Consumer Price Index (CPI) came in at 5.1 per cent over the year, the largest increase in inflation since 2000. The Reserve Bank increased interest rates by 0.25 per cent, the first jump in over 11 years. The wheel, it would seem, is turning.
How did we get into this mess?